petition to file for bankruptcy

Chapter 13 Bankruptcy: A True Debt Consolidation Option

Chapter 13 bankruptcy is a good option for people with steady income and high debt. It is sometimes called a “personal reorganization” or a “wage-earner bankruptcy”. It will allow you to pay all your necessary and reasonable living expenses like housing, transportation, clothing, food, education, personal

health, insurances, etc while satisfying your debt by paying a portion of the total amount owed over a period of time.

As soon as you file the Chapter 13 case, your creditors must stop all collection efforts including phone calls, lawsuits, garnishments and property seizures. If your home is in foreclosure, the foreclosure must stop. If your car is being repossessed, the repossession must also stop.

Chapter 13 will allow you to catch up on your overdue house payments while continuing your current house payments. If you owe a second mortgage, you may be able to “strip” (cancel) that mortgage depending on the facts of your case. You will be permitted to catch up on overdue car payments as well, while you make your current car payments under the plan.

Under Chapter 13, you do not need to give up or surrender your personal property and you can own more than one piece of real estate. It is a great option for a wage earner to reorganize their debt, get caught up on their bills and activate a plan to repay a portion of their debt over a set amount of time all while stopping creditors from initiating the original debt owed or initiating legal proceedings intended to garnish or seize property.

If you earn a good wage but are falling behind on your bills, call and speak to an Upper Peninsula Bankruptcy Lawyer at Church and Korhonen, PC. (906) 226-0001. There is no charge for the consultation. You will discuss your case with a Michigan licensed attorney who will advise if Chapter 13 is right for you. Your peace of mind is a phone call away.